OTMCJ 2012 4 1 Web Clanak 9 PDF
OTMCJ 2012 4 1 Web Clanak 9 PDF
OTMCJ 2012 4 1 Web Clanak 9 PDF
DOI 10.5592/otmcj.2012.1.9 Projects need to be performed and delivered under certain con-
Research paper
straints. Traditionally, these constraints are scope, time and cost.
The Scope Control process influences the factors that lead to project
scope changes and control the impact of those changes, which a key
issue for project success. It ensures that all requested changes and
recommended corrective actions are processed and that changes are
reduced or eliminated if they result in negative impact on projects.
The scope control is considered from the investors point of view, as
achieving the project goals is of primary importance for the investor.
The theoretical basis for the research is Dynamic Planning and Con-
trol Methodology (DPM). Practical implications and adjustments
are obtained, to result in an efficient system for managing changes
throughout a project. Research was conducted through question-
naire and interviews. Findings include reasons for and consequences
of changes from the point of view of various stakeholders in the pro-
ject, as well as recommended procedures for objective and practi-
cal management of the changes. The study discusses the basic con-
straints: cost and time. Further research should focus on quantify-
ing and determining the quality impact of changes and impact of the
project managers competencies on managing changes. The recom-
mended procedures are applicable for any building construction pro-
ject, but specific goals and constraints have to be incorporated into
the calculation. Furthermore, a database of projects and changes
could be created to facilitate preliminary assessments of the impact
of changes on future projects.
438 o rga nization , technology and management i n constructi on an i nte rnati onal j o urnal 4 (1)2 012
the success of change processes, and Scope management deals with the anal- Scientists agree that the multiplicity
studies best practice in the implemen- ysis and approval of changes in con- and complexity of requests for chang-
tation of change management (Mota- struction projects. One problem is the es in construction projects have a sig-
wa et al. 2006). Examples of this type disparity between requested/potential nificant impact on the financial flows
of research include: the concept of changes in a project and changes which of a project. Average costs incurred as
change management in a project (Con- may be approved. Requests for changes a consequence of requests for chang-
struction Industry Institute (CII) 1994), in the later phases of a project must be es in construction projects amount to
best practice in effective change man- rejected to a greater extent as they do 5-10% of the total project budget (Cox
agement (Cox et al. 1999), methods for not decrease quantitatively during the et al. 1999). In order to reduce the ef-
reducing the total number of changes project life cycle, while the possibility of fect of the negative consequences of
in construction projects (Stocks & impact on the project decreases. changes in construction projects, it is
Singh 1999), best practice recommen- necessary to find a more effective ap-
dations for effective change manage- Hester and associates dealt with the proach than that of statistical planning
ment (Construction Industry Research evaluation of the effect of changes on and controls (Lyneis & Cooper 2001).
and Information Association (CIRIA) certain elements of a project. They stud-
2001) and advanced change manage- ied the influence of changes during con- Many researchers propose the use of
ment (Ibbs et al. 2001). struction on work productivity (Hester system dynamics in the planning of ac-
et al. 1991). Lee and associates devel- tivities (Love et al. 2000); (Williams et
Scope management is responsible for oped models for the classification and al. 1995); (Rodrigues & Bowers 1996)
the majority of project failures, which quantification of losses in productivity and finding the causes of additional
can be concluded from previous re- resulting from changes in projects (Lee work in construction projects (Love et
search. (see fig.1) et al. 2004). al. 1999). In addition, system dynam-
ics methodology can improve decision
making at a strategic level.
Critical factor Reference
Change in initial project Balachandra and Friar (1997), Kumar et al. Investors are the most significant stake-
1
expectations (1996)
holders group in considering project
Change in overall project
2 Kumar et al. (1996) goals and the scope component. They
importance to the organization
Change in need for the project (by Balachandra and Friar (1997), Kumar et al. have short-term and long-term interests
3
the organization) (1996) during the whole project life cycle. (see
Brockhoff (1994), Pate-Cornell and Dillon fig. 2)
4 Change in overall complexity
(2001)
Change in overall time to Balachandra and Friar (1997), Brockhoff (1994), This is the main reason that it is the in-
5
completion Pinto and Mantel (1990), Pohlman et al. (2003)
vestors point of view that is considered.
6 Change in user needs Balachandra and Friar (1997), Brockhoff (1994) Research to date has for the most part
Change in overall project resources Arkes and Hutzel (2000), Brockhoff (1994), been based on change identification,
7
(people, material, funds) Pate-Cornell and Dillon (2001), Soman (2001) best practice in change management
Kumar et al. (1996), Pate-Cornell and Dillon during the project life cycle and evalua-
8 Change in technical difficulties (2001), Pinto and Mantel (1990), Pohlman et tion of the effect of change on individual
al. (2003)
project characteristics.
9 Change in funding source Pate-Cornell et al. (1990)
M. M. Nahod Scope Control Through Managing Changes in Construction Projects pp 438-447 439
Projects goals
Stakeholder Regarding to project lifecycle Regarding to benefits
Disposable Short-term Long-term Economic Social Political Marketing
Investor
Contractor
Consultant
Financial institution
440 o rga nization , technology and management i n constructi on an i nte rnati onal j o urnal 4 (1)2 012
% of Source of of execution as a whole, an increase in
Cause of changes
changes change
expenditures and negatively effects
Investors change requests caused by additional Project
1. 25% on the quality of the works for the re-
recognized needs for a project stakeholders
2. Partially incomplete project documentation 21%
Project alization of the project. In practice this
stakeholders
means temporary suspension of work
Change of technology caused by lack of availability of Project
3. 18% on the project due to lack of funds
designed technology in the market conditions
Lack of concrete construction material in region caused Project to complete the project. Incomplete
4. 12%
by high or low current demand conditions project documentation, according to
Project
5. Lack of financing for the timely completion of a project 10,5% research conducted, mainly results
constraints
Contractors change requests for easier operations, Project in changes in the engagement of re-
6. 8%
higher income, within the allowable limits for the project stakeholders sources and consequently invokes or-
Project documentation alignment with new regulations
Project ganizational changes in the phase of
7. adopted in the period between project design and 4%
conditions
realization realization.
8. Other 1,5%
M. M. Nahod Scope Control Through Managing Changes in Construction Projects pp 438-447 441
complexity to be commonly applied the overall set mode of execution and The Strategic Core - Analytic
in practice (Nahod, 2010). Therefore, within the project constraints. Howev- Hierarchy Process (AHP)
some adjustments have to be carried er, strategic management is not able to Strategic management is recognized
out to make the DPM method more ap- quantify exhaustive and detailed im- as critical for project success. It pro-
plicable in construction praxis. pact on a project. vides guidelines for operational man-
agement and makes decisions in the
The general idea was to divide the On the other hand, operational man- initial project phases. In this way, op-
layers into two main parts: strategic agement can quantify detailed impact erational decisions are adjusted to the
management and operational man- on a project, but has no scope for long-term influences on the project ex-
agement. (see fig 4). Changes must be changing the objectives and global ecution. For the purposes of adapting
managed on the basis of integrated information (on available time, costs the DPM to Croatian construction prac-
information from both of these. Over- and resources). Taking appropriate tice, a simulation of the strategic core
looking either one of these two parts decisions in operational management is simplified and incorporates AHP. It
of management will lead to ineffective partially depends on the strategic lev- determines the priority of project ob-
change management which will reflect el of management. jectives and the influence of requested
negatively on the success of the pro- In order to effectively manage a pro- changes on the achievement of these
ject. ject, synergy and simultaneous re- objectives. A projects objectives need
spect for strategic and operational ap- to be measurable, achievable and real-
Strategic management represents the proaches is necessary. istic. It is necessary to define 3-8 main
management actions undertaken for
the purpose of meeting the strategic
objectives of the project, which re-
quire the harmonization of execution
time, costs, resources and project ob-
jectives with the strategy of the sys-
tem of which the project is a part (Lee
et al. 2006; Nahod, Radujkovi, 2011)
442 o rga nization , technology and management i n constructi on an i nte rnati onal j o urnal 4 (1)2 012
Is the change beneficial to the achieve- ics and constraints. It is therefore very into account the complexity and uncer-
ment of the project objectives or not? important for effective planning to tainty at the strategic and operational
The strategic Core provides an answer have detailed modelling of all activity level.
to this question. The objectives should relationships, external and internal.
be clearly defined before project ex- External relationships refer to correla- Construction can be defined as a pro-
ecution, otherwise it is impossible to tions between activities, while inter- cess activity that is executed at vari-
implement this part of the procedure. nal relationships refer to relationships able locations with temporarily affili-
within individual activities. ated organizations and resources in an
The approval or rejection of a change open environment. As a result, a high
whose influence will be considered in For DPM customization, network plan- degree of unpredictability is constant-
the analysis shall represent alterna- ning is relevant. ly present.
tives to AHP. Software Expert Choice
can be used for facilitation of the AHP Critical Path Method (CPM) and Graph- It is obvious that existing tools may
process. ical Evaluation and Review Technique have difficulties with the understand-
(GERT) have already been applied in ing of dynamic characteristics in both
Comparison of objectives in pairs is construction. strategic and operational manage-
performed for each level of the hierar- ment, due to the static approach of
chical objective structure to determine The practical application of CPM is lim- network-oriented tools and the opera-
the weight of the importance of the ob- ited to cases where the construction is tional approach of simulation-oriented
jectives. not subject to any significant limits of tools.
time or resources. In this context, an
Testing change approval is performed optimal plan is one that uses a hybrid Since changes are dynamic, good
for each specific objective, assessing approach and combines a few existing quality change management is only
the extent to which the change is in tools, taking from each its specific ad- possible with the aid of tools that in-
line with the specific objective. Then vantage in order to achieve maximum tegrate a network-oriented simulation
the local weight of the individual ob- effectiveness of execution. The GERT approach, DPM and include both stra-
jective is calculated. method can actually manage feedback tegic and operational aspects of pro-
cycles in planning, but only for a static ject management.
At the end of the AHP process the scope of work. Classic network-orient-
change is assigned a level of com- ed tools are not effective in capturing The customized DPM incorporates all
pliance with project objectives (ex- cause-effect occurrence. of the above and is applicable in Croa-
pressed as a number between 0-1). tian construction practice.
The level of compliance is shown by On the other hand, tools based on sim-
the alternative Approval of Change ulation have been created to reveal un- Change request analysis
so the local alignment is weighted with certainties in construction. The most regarding to project
the weights of all nodes which belong, commonly used are discrete simula- constraints
looking from the lowest level in the hi- tions which focus on operational as- The main constraints are time and
erarchical model towards the highest pects of construction projects with the cost. The proposed methodology is
level and then at the sum. aid of stochastic process waiting time. recommended for application to all
Although simulation models prove other specific project constraints as
The operational level of useful at the operational level, they well.
change management are only partially applicable for strate-
Operational management in the cus- gic management in construction. One It is necessary to define the threshold
tomized DPM covers the tactical, possible reason for poor adjustment at of reasonableness and the feasibil-
operational and interface layers of the strategic level is a difficult process ity threshold for each constraint. The
the DPM. Sine qua non is that the ex- of development and natural focus on threshold of reasonability is margin-
ecution plan is approved and that it the operational level. ally acceptable for the project (opov),
contains all necessary activities con- In determining the advantages and and the feasibility threshold is the
nected with adequate technological or drawbacks of using certain planning project constraint that must never be
organizational relationships. tools, it is important to know which exceeded (opov).
The relationships between the activi- project characteristics are important
ties are crucial for defining the dynam- for project management and to take
M. M. Nahod Scope Control Through Managing Changes in Construction Projects pp 438-447 443
For each constraint, oi (0< i < j) equals: The application works as follows:
n1,t =1, (3)
(1)
n1,t = (n1,t 1 + 1)if n1,t 1 n1,t
where ities in the network plan (Nahod 2010).
St 1 < St
foi The change approval factor for a Activities differ from each other in type, ,
specific constraint method of execution, engagement of (4)
f ki The correction factor due to af- resources and in all other aspects, Where
fordability constraints which increases the level of diversity in n1,t1 The number which indicates the
a project. This cause often warming up order of the preceding activity in
oi ,real oi ,pov phases, the need for coordination and the network plan, n1 N
fki = 1 organizational obstacles. Some activi- St The date of commencement of
oi ,izv oi ,pov
, ties may then last for a shorter period, observed activities in the plan
(2) but the appearance of changes among St1 The date of commencement of
oi,real The requested change effect them creates the potential risk of addi- the preceding activity in the plan
value on the project dimension and tional work and error.
unit of constraint measurement In order to determine the sensitivity The procedure of increasing the value
oi,izv The feasibility threshold of of a requested change in the execu- of n1 is iteratively repeated until the
constraint on the project tion plan, it is necessary to determine system has completely stabilized (un-
oi,pov The threshold of reasonability the activities in the execution plan til n1 is constant for each t activity).
of constraint on the project that will be directly influenced by the At this moment, balance has been
oi,real 0 if the change influences the change. If the change directly affects achieved, which means that the n1
planned constraint such that its more than one activity, the average variable contains the order of activi-
effect is even more positive that the value of sensitivity is applicable. For ties in the series of the network plan.
constraint is in the initial execution the purpose of calculation, an appli-
plan (i.e. for the given constraint, cation was developed in Visual Basic n1,max = maxni=1(n1,i), (5)
change is positive, e.g. when a for MS Project which adds to each
change requires the replacement of non-summary activity the value of its where n is the number of activities in
one activity with another that has logical order in the network, on the the plan
a more favourable constraint value basis of which it automatically calcu-
than that of the original activity). lates the sensitivity of the activity to n2,t = n1,t/n1,max, (6)
a change.
Sensitivity of change to the The application adds three custom- n3,t = 1 n2,t = fpol,t, (7)
Execution Plan ized fields to each activity: n1, n2 and
Sensitivity of change to the execution n3. fpol,t The change approval factor
plan is checked by testing the imple- n1,t a number which indicates the with respect to the activity
mentation of a change in the plan. As order of observed activity in the sensitivity to which the change
the project progresses, the degree of network plan, n1 N relates directly
realization increases, but the possibili- n2,t a number which indicates the If ti (i=1, ..n) are all activities in the
ty for influencing the project decreases. sensitivity of the observed activity plan which are directly related to
Research on changes in construction to a change, n2 R, 0 < n2 < 1 the observed change, then the
projects on the planned execution of n3,t a number which indicates the following is valid:
four large construction projects in the approval factor for the observed
n
City of Zagreb in the period from 2004 activity with respect to the f
i = 1 pol ,i
2009 led to the conclusion that for sensitivity of the activity in the fpol =
change management the crucial chain plan, , n
of activities is the longest chain of activ- n3 R, 0 < n3 < 1 (8)
444 o rga nization , technology and management i n constructi on an i nte rnati onal j o urnal 4 (1)2 012
which means that the impact of the j Number of constraints in a project managing the changes is developed,
sensitivity of the activity to change to be taken into account in the but without adjustments to readiness
is the mean value of sensitivity for all calculation of construction industry it cant have
planned activities that are directly re- The value of the approval factor can greater applications. The customized
lated to the change. be interpreted as follows: DPM method combines theory and
fodo > 0.5 ... the change is acceptable practice into an effective tool for mak-
Total impact of change on according to the customized DPM ing decisions in respect of approving
planned execution fodo 0.5 ... the change is not (or rejecting) requested changes. It
At the end, the approval impact of the acceptable according to the enables quantification of the impact
change is integrated in respect of its customized DPM of a requested change on project ob-
compliance with the objective, the in- jectives, constraints and compliance
fluence of all relevant constraints in The recommended procedures are de- with the initial project execution plan.
the project on the potential approval rived from three main steps that check All parts of the procedures and their
of the change and the impact of sen- the impact of a requested change on preconditions are determined. The
sitivity. project objectives, constraints and proposed model provides an objective
The final approval factor fodo is: the timely execution of the plan (see and comprehensive solution for scope
fig 5). To begin with, it is crucial to management in construction projects.
fodo =
j
( )
fcilj + i =0 foi fki + ff + fpol have a real project plan on which fur- Further research should focus on the
j+2 ther procedures depend. These proce- improvement of quality in the calcu-
, dures are the result of the integration lation of change impact as well as
(9) of theoretical and practical aspects verification of the impact of a project
Where of managing changes in construction managers competencies on manag-
fcilj Approval change factor with projects. ing changes. A database of projects
respect to compliance with the and changes could facilitate the pre-
project objectives Conclusions liminary assessments of the impact
foi Approval change factor with Scope management is one of the an- of changes in future projects. Finally,
respect to the impact of the change gles of the project management trian- managing the changes and scope con-
on constraint gle, which means that together with trol contributes directly to the achiev-
f ki Correction factor with respect to time and cost it represents one of ing project success.
the reasonability of the constraint the most significant constraints and
f f Correction factor with respect to focuses on the project. There can be
the flexibility of the constraints, f f no project success without a system-
0.15 atically and professionally appointed
fpol Approval change factor with system for managing the scope. Scope
respect to the sensitivity of the control is achieved through managing
activity to change changes. The theoretical basis for the
M. M. Nahod Scope Control Through Managing Changes in Construction Projects pp 438-447 445
Figure 5 Procedures for managing changes
446 o rga nization , technology and management i n constructi on an i nte rnati onal j o urnal 4 (1)2 012
Lee, S., Pena-Mora, F., & Park, M. Nahod M.M., Radujkovi, M. (2011),
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M. M. Nahod Scope Control Through Managing Changes in Construction Projects pp 438-447 447